COPENHAGEN (Reuters) - Finnish forestry company UPM said on Wednesday its Raflatac unit would permanently close its plant in Kaltenkirchen, Germany, to improve the group's efficiency and productivity, affecting 154 jobs.

The label material production of the factory will be transferred to Raflatac's factories in Poland and Finland, while the graphics solutions will be transferred to its factory in Belgium in 2025, UPM said in a statement.

"By centralising the production to more cost competitive factories, we will also improve the cost efficiency and quality of our products and will be able provide better service to our customers," the company said.

The group's Fibres division in October also said it may cut up to 110 jobs in Finland to increase efficiency and maintain profitability.

(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)